Voters looked set to back nearly every local data-center restriction on the ballot

As of the morning of 4 November, nearly every local ballot question related to data centers looked set to come down against data center development, MIT Technology Review reported. Ballotpedia counted 41 such questions. Tom's Hardware's headline said 45 measures were put on the ballot and described data centers as "comprehensively defeated." The two counts differ.

The votes put the debt-fueled data center buildout under sharper scrutiny, CNBC reported. Data centers became a major campaign issue in the midterms, with $173 million spent on almost entirely negative advertising nationwide, according to AdImpact data cited by CNBC.

Texas governor race

In Texas, Democrat Gina Hinojosa beat Republican incumbent Governor Greg Abbott, who was seeking reelection. She campaigned on a moratorium on new data centers, an end to industry tax breaks and requirements that developers cover their full electricity costs, CNBC reported. Texas has just under 600 data center projects, according to Data Center Map, with a good portion planned or under construction. Abbott had ordered a permitting pause, but an investigation found Texas regulators continued processing applications, Gizmodo reported. Abbott's office maintained that the pause barred approvals, not processing. Republicans still control the Legislature, limiting Hinojosa's ability to overhaul state policy, CNBC reported.

Georgia and utility commissions

In Georgia, data centers became a major attack line in the governor race. Democrat Keisha Lance Bottoms, who advocated a statewide pause, beat Republican Rick Jackson, who said he would allow projects with local support, Gizmodo reported. Democrats also took control of the Georgia Public Service Commission for the first time in 30 years, MIT Technology Review reported. The commission regulates electric utilities and controls much of the grid's buildout, giving it sway over utility bills and how data centers connect to power.

In Arizona, Democrats Clara Pratte and Jonathon Hill are expected to disrupt the Republican majority on the state utility commission after promising to crack down on utility price hikes associated with data center development, according to Gizmodo. Local utility commission races across 10 states, including Georgia, Arizona and Oklahoma, became central to determining how AI data centers are connected to the grid.

What happens next

Hinojosa will wield wide influence over state decisions on electricity, water, environmental permits and tax incentives that data center operators depend on, CNBC reported.

Democrats won control of the House and were projected to take the Senate, NBC News reported. MIT Technology Review said Democrats had taken both chambers, but neither is near a two-thirds majority, so big federal energy legislation is unlikely while Trump remains in the White House. The Senate is set to vote on the Bipartisan American Affordability and Jobs Act on 9 November, before the new Congress takes control in January. The bill would overhaul how new energy projects are reviewed and approved, aiming to cut red tape and speed permitting, MIT Technology Review reported. That matters for data centers because they depend on grid connections and new energy projects, the same issue behind the utility commission races.